Lauren Forristal writes via TechCrunch: Netflix announced during its Upfronts presentation on Wednesday that it's launching its own advertising technology platform only a year and a half after entering the ads business. This move pits it against other industry heavyweights with ad servers, like Google, Amazon and Comcast. The announcement signifies a significant shake-up in the streaming giant's advertising approach. The company originally partnered with Microsoft to develop its ad tech, letting Netflix enter the ad space quickly and catch up with rivals like Hulu, which has had its own ad server for over a decade. With the launch of its in-house ad tech, Netflix is poised to take full control of its advertising future. This strategic move will empower the company to create targeted and personalized ad experiences that resonate with its massive user base of 270 million subscribers. [...] Netflix didn't say exactly how its in-house solution will change the way ads are delivered, but it's likely it'll move away from generic advertisements. According to the Financial Times, Netflix wants to experiment with "episodic" campaigns, which involve a series of ads that tell a story rather than delivering repetitive ads. During the presentation, Netflix also noted that it'll expand its buying capabilities this summer, which will now include The Trade Desk, Google's Display & Video 360 and Magnite as partners. Notably, competitor Disney+ also has an advertising agreement with The Trade Desk. Netflix also touted the success of its ad-supported tier, reporting that 40 million global monthly active users opt for the plan. The ad tier had around 5 million users within six months of launching.

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Roblox announced it'll be rolling out virtual billboards with video advertisements that will be displayed in its virtual worlds. Reuters reports: Users will now see billboards featuring content from brands such as e.l.f beauty, Walmart and Warner Bros Discovery, just as they would in real life. That would give advertisers access to Roblox's nearly 72 million daily active users -- half of whom are Gen-Z customers, a population group prized by marketers and businesses. The company in November began testing the video ads -- that will be served to users who are 13 years and older -- as part of its efforts to reduce reliance on revenue generated from its in-game currency "Robux", which players can use to buy outfits, vehicles and other features inside the company's digital worlds. It charges a fee on all purchases done on its platform, which hosts millions of videogames that are built by its users -- who get a share of any related revenue. That practice will extend to the ads, with creators of the virtual worlds who opt to show the billboards getting a portion of the revenue Roblox makes from them. Roblox is hoping its large Gen-Z user base will give it an edge in the competitive ad market, where it would have to wrestle for marketing dollars with tech giants such as Google and Meta and smaller players such as Snap.

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An anonymous reader quotes a report from The Streamable: Roku wants to take the term "ad-supported" to another level. The company held its quarterly earnings conference call on Thursday, and revealed that 81.6 million households used a Roku device or smart TV to stream video in the first three months of the year. As part of the report, company CEO Anthony Wood laid out ideas for how the company would increase revenues in 2024. Unsurprisingly, advertising will be an important centerpiece of that strategy, and Wood provided some details on what Roku users can expect from their ad experience going forward. The idea of bringing more ads to the Roku home screen is nothing new, but that's what Wood focused on in his discussion with analysts about how to boost revenue on the Roku platform. The company has already begun putting more static ads on the screen, but now it appears that Roku is considering how to get video ads embedded into the home page as well. Wood said that he believes that a video-enabled ad unit on the Roku home screen will be "very popular with advertisers," considering that Roku devices have the reach to put ads in front of 120 million pairs of eyes every day. He also said that the company is "testing other types of video ad units, looking at other experiences" that it can bring to the Roku home screen. As another way to boost ad revenues, Wood suggested that the company's home screen experiences could be leveraged to deliver more ads. He pointed to the NBA Zone, which Roku launched at the beginning of April as an example. Roku can use these themed content hubs to deliver ads more tailored to fans of that particular content, harnessing the power of popular sports to pull more ad revenue. Customers concerned that Roku will just gunk up their home screen with ads are likely wondering if the company has made any moves toward actually making the user experience on the platform better. The good news is that Roku has also introduced a recommended content row, that will compile picks from across various streaming services and use AI to point customers toward new shows and movies they might like. "There's lots of ways we're working on enhancing the home screen to make it more valuable to viewers but also increase the monetization," Wood said.

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On Mozilla's blog, engineer Martin Thomson explores Google's "Privacy Sandbox" initiative (which proposes sharing a subset of private user information — but without third-party cookies). The blog post concludes that Google's Protected Audience "protects advertisers (and Google) more than it protects you." But it's not all bad — in theory: The idea behind Protected Audience is that it creates something like an alternative information dimension inside of your (Chrome) browser... Any website can push information into that dimension. While we normally avoid mixing data from multiple sites, those rules are changed to allow that. Sites can then process that data in order to select advertisements. However, no one can see into this dimension, except you. Sites can only open a window for you to peek into that dimension, but only to see the ads they chose... Protected Audience might be flawed, but it demonstrates real potential. If this is possible, that might give people more of a say in how their data is used. Rather than just have someone spy on your every action then use that information as they like, you might be able to specify what they can and cannot do. The technology could guarantee that your choice is respected. Maybe advertising is not the first thing you would do with this newfound power, but maybe if the advertising industry is willing to fund investments in new technology that others could eventually use, that could be a good thing. But here's some of the blog post's key criticisms: "[E]ntities like Google who operate large sites, might rely less on information from other sites. Losing the information that comes from tracking people might affect them far less when they can use information they gather from their many services... [W]e have a company that dominates both the advertising and browser markets, proposing a change that comes with clear privacy benefits, but it will also further entrench its own dominance in the massively profitable online advertising market..." "[T]he proposal fails to meet its own privacy goals. The technical privacy measures in Protected Audience fail to prevent sites from abusing the API to learn about what you did on other sites.... Google loosened privacy protections in a number of places to make it easier to use. Of course, by weakening protections, the current proposal provides no privacy. In other words, to help make Protected Audience easier to use, they made the design even leakier..." "A lot of these leaks are temporary. Google has a plan and even a timeline for closing most of the holes that were added to make Protected Audience easier to use for advertisers. The problem is that there is no credible fix for some of the information leaks embedded in Protected Audience's architecture... In failing to achieve its own privacy goals, Protected Audience is not now — and maybe not ever — a good addition to the Web."

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An anonymous reader quotes a report from Kotaku: A new patent recently filed by TV and streaming device manufacturer Roku hints toward a possible future where televisions could display ads when you pause a movie or game. For Roku, the time in which the TV is on but users aren't doing anything is valuable. The company has started leasing out ad space in its popular Roku City screensaver -- which appears when your TV is idle -- to companies like McDonald's and movies like Barbie. As tech newsletter Lowpass points out, Roku finds this idle time and its screensaver so valuable that it forbids app developers from overriding the screensaver with their own. But, if you plug in an Xbox or DVD player into the HDMI port on a Roku TV, you bypass the company's screensaver and other ads. And so, Roku has been figuring out a way to not let that happen. As reported by Lowpass on April 4, Roku recently filed a patent for a technology that would let it inject ads into third-party content -- like an Xbox game or Netflix movie -- using an HDMI connection. The patent describes a situation where you are playing a video game and hit pause to go check your phone or grab some food. At this point, Roku would identify that you have paused the content and display a relevant ad until you unpaused the game. Roku's tech isn't designed to randomly inject ads as you are playing a game or watching a movie, it knows that would be going too far and anger people. Instead, the patent suggests several ways that Roku could spot when your TV is paused, like comparing frames, to make sure the user has actually paused the content. Roku might also use the HDMI's audio feed to search for extended moments of silence. The company also proposes using HDMI CEC -- a protocol designed to help devices communicate better -- to figure out when you pause and unpause content. Similarly, Roku's patent explains that it will use various methods to detect what people are playing or watching and try to display relevant ads. So if it sees you have an Xbox plugged in, it might try to serve you ads that it thinks an Xbox owner would be interested in.

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Starting this week, Discord will show ads on the site from video game companies, some of which will offer users gifts for carrying out in-game tasks. According to the Wall Street Journal, Discord said users will be able to turn off the ads in their settings. From a report: The sources said Discord aims to hire more than a dozen ad sales people. WSJ said the addition of ads marks a pivot for Discord, whose CEO Jason Citron has repeatedly said the company would not rely on advertisers the way platforms like Facebook and Instagram do.

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"Multiple users around the world have started to notice new Microsoft Bing pop-up ads that look a lot like malware..." reports Lifehacker, describing the adds as "very low quality" and "extremely pixelated..." "It's just Microsoft doing a bad job of trying to get you to switch to its products." The Register explains: [W]hile using Google's desktop browser on Windows 10 or 11, a dialog box suddenly and irritatingly appears to the side of the screen urging folks to make Microsoft's Bing the default search engine in Chrome. Not only that, netizens are told they can use Chrome to interact with Bing's OpenAI GPT-4-powered chat bot, allowing them to ask questions and get answers using natural language. We can forgive those who thought this was malware at first glance. "Chat with GPT-4 for free on Chrome!" the pop-up advert, shown below, declares. "Get hundreds of daily chat turns with Bing AI." It goes on: "Try Bing as default search," then alleges: "Easy to switch back. Install Bing Service to improve chat experience." Users are encouraged to click on "Yes" in the Microsoft pop-up to select Bing as Chrome's default search engine. What's really gross is the next part. Clicking "Yes" installs the Bing Chrome extension and changes the default search provider. Chrome alerts the user in another dialog box that something potentially malicious is trying to update their settings. Google's browser recommends you click on a "Change it back" button to undo the tweak. But Redmond is one step ahead, displaying a message underneath Chrome's alert that reads: "Wait — don't change it back! If you do, you'll turn off Microsoft Bing Search for Chrome and lose access to Bing AI with GPT-4 and DALL-E 3." This is where we're at: Two Big Tech giants squabbling in front of users via dialog boxes. "Essentially, users are caught in a war of pop-ups between one company trying to pressure you into using its AI assistant/search engine," writes Engadget, "and another trying to keep you on its default (which you probably wanted if you installed Chrome in the first place). "Big Tech's battles for AI and search supremacy are turning into obnoxious virtual shouting matches in front of users' eyeballs as they try to browse the web." Or, as Lifehacker puts it, "If Microsoft really wants to increase the number of users turning to Bing for its search results, it needs to prove that there's a real reason to switch. And these malware-like ads aren't the solution."

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